How to Reduce Employee Turnover. Employee turnover can be expensive, especially for a small business with few employees. Every time an employee leaves, there may be expenses for advertising the position and training the new employee. To decrease the employee turnover in any company, it's crucial to keep the employees happy where they are.
Offer fair working conditions and above-average pay. Check on the pay and benefits offered to your competitor's employees and raise your employees' pay when necessary.
Get to know your employees. Understand their concerns and listen to their complaints. Be accessible anytime an employee has a problem for you to solve. Accept suggestions even from low-level employees.
Think of incentives that will decrease the turnover. Offer bonuses or prizes for specific levels of productivity. Give money incentives regularly when warranted and you can be assured every employee will be interested in staying for the next round of incentives.
Allow promotional opportunities. Listen to employees who want to cross train for other skills or to be considered for promotions. Remember that employees will be more willing to stay if they have a future with the company.
Start with quality employees with a good work history. Look for employees who have few or nonexistent gaps in their resumes. Hire employees with a history of company loyalty and job retention.
Stay in communication with your employees. Stay ahead of any problems that might be brewing among the employees and try to keep the workplace pleasant. Make each employee feel like an important and irreplaceable part of the company.